The Reserve Bank of India (RBI) has revised India’s FY26 real GDP growth projection to 7.3%, up from its earlier estimate of 6.8%, signalling stronger-than-expected economic momentum despite pockets of weakness.
Announcing the upgraded outlook, RBI Governor Shaktikanta Das said the economy continues to demonstrate resilience supported by robust domestic demand, steady services activity, and improving manufacturing trends.
The Governor highlighted that high-frequency indicators suggest economic activity is holding up well in Q3, even as some leading indicators are showing signs of weakness.
He added that manufacturing activity continues to improve, while the services sector remains steady and is expected to continue performing robustly, especially in exports. However, he acknowledged that merchandise exports are facing headwinds, reflecting pressure from global trade conditions.
Despite these mixed trends, the Governor noted that the RBI still has “room to use policy measures to sustain growth,” indicating a supportive stance going forward.
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